Philips Reports 3% Sales Decline,
Forecasts More Sluggish Demand

By

Cassell Bryan-Low Staff Reporter of The Wall Street Journal

Updated July 19, 2005 12:01 a.m. ET

Philips Electronics NV reported a second-quarter increase in net income thanks to an exceptional gain, but sales fell 3% and the Dutch consumer-electronics giant warned that sluggish demand could continue.

Philips, based in Amsterdam, said sales in the second quarter fell to &euro;7.09 billion ($8.54 billion) from &euro;7.3 billion a year earlier. Chief Executive Gerard Kleisterlee blamed slowing global growth, particularly in...